Snapdeal’s promoter Jasper Infotech is planning to set up its own mobile-focused technology incubator to offer an array of services to hit the Indian e-commerce market. The service is expected to be up and running in the current financial year and will look to stimulate early-stage ventures operating in the mobile technology space. The more details like nature of developments etc. are still undisclosed.
For this initiative, Snapdeal might also consider partnering with other incubators or mobile companies, as well as provide seed funding to its incubated companies, while taking an equity stake in the ventures. The incubator looks to make more acquisitions in the mobile space, so it can be expected that it will serve as a feeder for Snapdeal, as per an ET report.
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“We are in the process of structuring the incubator, and plans are, more or less, in place. We will start looking for companies once we have an interface for it, which will be separate from Snapdeal,” said Abhishek Kumar, head, corporate development, at Snapdeal.
According to Kumar, who joined the eBay backed e-commerce company in July, and is expected to lead its M&A initiatives, Snapdeal will incubate about eight ventures for a period of two months per batch, and will set up a separate team to run the initiative.
Co-Founder & CEO Kunal Bahl announced in May that the company was looking up to four acquisitions on the mobile technology and data analytics spaces in the current financial year. Last month, Tata Sons’ chairman Ratan Tata had made a personal investment in Snapdeal. It is having a total capital to date is USD 435.7 million. It is backed by 14 investors and had made 4 acquisitions, till date. Last year, the firm had made a Seed investment of USD 20,000 in online chat portal, Zumbi.
Snapdeal.com has seen 600% growth year-on-year for the last two years. Currently, the company is run by a team of 1500+ members. Also, Snapdeal and Tata Value Homes announced a partnership for starting the real estate vertical of the former together.Category Startups Technology